CSCO
Cisco Systems, Inc.Technology / Communication EquipmentINTACTCisco Systems, Inc. designs, develops, and sells technologies to power, help, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company provides data center switching; network security, identity and access management, and secure access service edge; identity and agentic security solutions; interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; WEBEX suite, collaboration devices, and contact center; communication platform as a service software, including perpetual licenses, subscription arrangements, and hardware solutions; network assurance and observability suite; accelerated issue resolution, software support, and hardware replacement; professional services, such as planning, design, implementation, and high-value consulting; service and support packages, financing, and managed network services; and regional, national, and international wireline carriers, webscale products, internet, and cable. It also provides wireless products, including indoor and outdoor coverage designed for seamless roaming use of voice, video, and data applications; end-to-end collaboration solutions through cloud, on-premise, or within hybrid cloud environments. In addition, it offers technical support services. The company serves businesses, public institutions, governments, and service providers. It sells its products and services directly, through systems integrators, service providers, and other thirdy-party resellers, and distributors. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
Price vs. Intrinsic Value Corridor
Overvalued vs DCF ($72.97)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $12,737 | $14,508 | $16,525 | $18,821 | $21,438 | $22,402 | $23,410 | $24,464 | $25,565 | $26,715 |
| Present Value (PV) | $11,686 | $12,211 | $12,760 | $13,334 | $13,933 | $13,358 | $12,806 | $12,278 | $11,771 | $11,285 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
HIGH BARRIERAt the current price of $111.56, the market is assuming the business will compound Free Cash Flow at 14.6% per year for the next decade with a 9% hurdle rate.
Surveil CSCO with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Cisco Systems, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 27.7% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Cisco Systems, Inc. (CSCO) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Cisco Systems, Inc..
Related Technology Value Stocks & Sector Peers
Compare Cisco Systems, Inc. with audited intrinsic valuation models across the Technology sector.
Apple Inc.
Consumer Electronics
Microsoft Corporation
Software - Infrastructure
NVIDIA Corporation
Semiconductors
Broadcom Inc.
Semiconductors
Oracle Corporation
Software - Infrastructure
Salesforce, Inc.
Software - Application